Last checked at 3 Nov 2020 12:23
3 November, 2020
Pantheon Resources plc
Formal Approval of the Alkaid Unit
Pantheon Resources plc ("Pantheon" or "the Company") the AIM-quoted oil and gas exploration company with working interests of 89.2% - 100% in certain projects located adjacent to transportation and pipeline infrastructure on the Alaska North Slope is pleased to announce one of its 100% owned group company's application to form the Alkaid Unit (which encompasses 22,804 acres) has been formally approved by State of Alaska, Department of Natural Resources ("DNR").
As part of the now granted unit application, Pantheon submitted a First Plan of Exploration ("POE") outlining its proposed activities in relation to the unit. These include a commitment to the reprocessing of approximately 50 Square miles of 3D seismic as well as engagement of 3rd party specialists to produce an engineering study on a conceptual 'hot-tap' into the Trans Alaska Pipeline System ("TAPS"). There are no firm drilling commitments, however the POE proposes the drilling of two wells from gravel pads located adjacent to the Dalton Highway to allow year round activity. Under the POE, drilling and long-term production testing on the first of these wells, the Alkaid #2 well, is targeted for Spring/Summer 2021. Dependent upon the results of Alkaid#2, the POE anticipates the drilling and testing of the Alkaid#3 well to commence in 2022.
Jay Cheatham, CEO, commented: "It's a great day for Pantheon with the State of Alaska formally awarding the Unit Agreement over our 100% owned Alkaid project. This is the culmination of a long and collaborative process with the DNR in a submission process which involved consideration of a great deal of technical, geological, engineering and environmental information. We thank the DNR for their considerable efforts in this process. We now have tenure over 22,804 acres in the new Alkaid Unit. The independent experts at Lee Keeling & Assoc., in January of this year when they completed their report on Greater Alkaid, calculated a $595 million net present value (NPV10) for this singular project (at the then prevailing realized oil price of $55/Bbl). At the current Brent forward curve, the NPV10 is closer to $300 million, which is still very significant. A major benefit of Alkaid over other projects on the Alaska North Slope is that wells can be brought onto production rapidly after testing by trucking produced oil up to Pump Station #1, about 20 miles north of Alkaid. Alkaid's location, underneath and adjacent to the Dalton Highway and the Trans Alaska Pipeline System allows the siting of a drill pad next to the Dalton Highway which offers the ability for year-round activity as well as other material advantages."
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Further information:
Pantheon Resources plc | +44 20 7484 5361 |
Jay Cheatham, CEO | |
Justin Hondris, Director, Finance and Corporate Development | |
Canaccord Genuity plc (Nominated Adviser and broker) | |
Henry Fitzgerald-O'Connor Adam James Angelos Vlatakis
| +44 20 7523 8000
|
Blytheweigh | |
Tim Blythe, Megan Ray, Madeleine Gordon-Foxwell | +44 20 7138 3204 |
Notes to Editors
Pantheon Resources plc is an AIM listed Oil & Gas exploration and production focused on several large projects located on the North Slope of Alaska ("ANS"), onshore USA. A major differentiator to other ANS projects is its close proximity to transport and pipeline infrastructure. The Group's stated objective is to create material value for its stakeholders through oil exploration, appraisal and development activities in high impact, highly prospective conventional assets, in the USA; a highly established region for energy production with infrastructure, skilled personnel and low sovereign risk. All operations are onshore USA, with drilling costs materially below that of offshore wells.
On the North Slope of Alaska, Pantheon holds working interests of 89.2% - 100% in projects covered by c.1,000 square miles of proprietary 3D seismic. The Company has received Independent Expert Reports certifying a Contingent Resource of 76.5MMBO (million barrels of oil) recoverable on its Greater Alkaid project and 302MMBO Prospective Resource at its Talitha project.
Information contained within this RNS is considered to be inside information prior to its announcement. For further information on Pantheon Resources plc, see the website at: www.pantheonresources.com. The information contained within this RNS is considered to be inside information prior to its release. Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.